In July 2009, the European Commission announced a change in financial support for exporters.



  • 1 harmful
  • 0 neutral
  • 0 liberalising


European Commission. (7 July 2009). Proposal for a Council Regulation derogating from Regulation (EC) No 1234/2007 ("Single CMO" Regulation) as regards the 2009 and 2010 intervention periods for butter and skimmed milk powder ?COM(2009) 354 final'. To be obtained at

European Commission. (22 July 2009). Dairy Market situation 2009 'COM(2009) 385 final'. To be obtained at

COPA-COGECA. (7 September 2009). Agriculture Council: EU Ministers must take urgent action to help the
dairy sector 'Press Release'. To be obtained at

EurActiv. (24 July 2009). EU agrees steps to help dairy prices. To be obtained at

EurAcitv. (8 September 2009). 16 EU countries back new milk regulation. To be obtained at

Inception date: 22 Jul 2009 | Removal date: 19 Feb 2010

Export subsidy

On 22 July 2009, the member states of the European Union agreed to help stabilize falling dairy prices by scrapping the minimum price for cheese to qualify for export subsidies. Extension of purchases of butter and milk powder are also planned.
These steps are taken with the goal of removing the surplus on the respective markets. The current regulations allowed the European Commission to buy surplus butter and milk powder from the market. This regulation has now been extended until the end of November 2009 and the report of 22 July 2009 includes a proposal of extending the scheme until February 2010.
In the report published on 22 July 2009, titled Dairy market situation report, the European Commission describes a number of measures supporitng the dairy market. The measures that will continue to be used are intervention, private storage aid and export refunds. The European Commission will now also allow direct payments to farmers to be paid early and has just launched a new round of dairy promotion programmes. Other instruments include "levies on producers who exceed their quota to finance voluntary retirement from milk production, and the extension to farmers of the Temporary Crisis Framework for state aid."